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Re:Robinhood Stored Passwords in Plaintext by mnem on Wednesday July 24, 2019 @06:09PM (#20520436)
I agree that it becomes the new password, but it prevents your own site becoming a contributor to credential stuffing attacks - if you don’t have the clear password transmitted to your systems, you can’t leak it accidentally in logs or through poor DB practices.

I wonder why PAKEs haven’t caught on?

Re:Robinhood Stored Passwords in Plaintext by ynniv on Wednesday July 24, 2019 @06:14PM (#20520502)
Anything faster than bcrypt is practically clear text due to brute forcing, and running bcrypt inside the user interface is needlessly expensive. The common practice is to ensure that passwords are checked and discarded before they can be accidentally disclosed, or to avoid re-usable passwords altogether. Production logs should also only be accessible when there is a direct need. Sometimes this still fails, but it is relatively rare in well run sites.